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HomeMy WebLinkAboutMinutes 09/20/2001 CALL TO ORDER: ROLL CALL: Approval of Minutes Cascadia Center Project LODGING TAX ADVISORY COMMITTEE Port Angeles, Washington September 20, 2001 Councilman Wiggins called the meeting of the Lodging Tax Advisory Committee to order at 2:00 p.m. Members Present: Councilman Wiggins, Councilman Campbell, Zoe Bay ton, John Brewer, Carol Griffith, Jim Haguewood, Patty Hannah, Bob Harbick, Jack Harmon, and Steve Oliver. Members Absent: Bill Rinehart. Staff Present: Manager Quinn, Clerk Upton, Marc Connelly, Jerry Cole, and Dan Estes. Others Present: Rick Hert, Russ Veenema, Michael Leuhers, Brian Pettyjohn, Jan Harbick, Barbara Boerigter, and Maureen Zook Pfaff. Approval of Minutes: Steve Oliver moved to approve the minutes of the August 2, 2001, meeting. The motion was seconded by Bob Harbick and carried unanimously. Cascadia Center Project: Mr. Brian Pettyjohn, acting as spokesman for the Cascadia Center for the Performing and Literary Arts, submitted a proposal in the amount of $100,000 to the Lodging Tax Advisory Committee for the purpose of partially funding the first phase of project development, that being the Due Diligence and Feasibility Phase. Mr. Pettyjohn reviewed the vision for the perfonning and literary arts center, to include tlnee theaters for performing arts, as well as recital, practice and class rooms, offices, public lobbies, master's cottages, storage and maintenance facilities. He described the full scope of the project, noting there are plans for a 1,650 square foot concert hall complete with a pipe organ. He indicated the cost of the Due Diligence and Feasibility Phase is projected to be $200,000, and one-half of that amount is being sought through sources other than the City. In response to a question from Carol Griffith, Mr. Pettyjohn reviewed the plans specifically relating to conference capabilities, noting that much of what Cascadia is planning would be accomplished at a time other than during the summer months. He emphasized the need to attract people to town duriug the off season, and he reviewed plans for accommodating 1,650 people in the auditorium, 400 in theater seating, as well as others in various breakout rooms. Questions and answers followed, and Mr. Pettyjohn indicated the group is planning to submit an application for funds from the Clallam County Opportunity Fund. Should funding not be forthcoming from the City, he indicated the group would have to seek funds from other private funding sources. He noted the importance of City support, as it would serve as an endorsement when other potential funding sources are identified. Mr. Pettyjohn, in response to a question from Steve Oliver, summarized in detail the -1- LQDGING TAX ADVISORY COMMITTEE September 20, 2001 Cascadia Center Project (Cont'd) 2002 Marketing Program Proposal - Port Angeles Chamber of Commerce group's plans for an endowment. He indicated that many of the endowments would be from private sources, and a large portion of funding could be anticipated from the State Arts Program, plus other funds would be applied for under the HUD program. Mr. Pettyjohn discussed plans for lobby sentinels representing eight Indian tribes, and it is expected that a certain amount of funding could be obtained from the Bureau oflndian Affairs. Mr. Pettyjohn indicated all of the endowments would need to be in place before the project commences, as the group would not want to be in the position of returning at a later date with a request for additional funds. Mr. Pettyjohn further described the nature of the endowment, indicating the overall $39 Million would be split 50 I 50 for construction and operating expenses. Lengthy discussion ensued, and Councihnan Wiggins expressed interest in seeing a pro forma for the project. Jack Harmon felt it would be beneficial to see the commitments made by their constituents for the remainder of the funds to be used for the Due Diligence and Feasibility Study. The members of the committee explained to Mr. Pettyjohn the competitive nature of the lodging tax funds and the importance of identifying the risk associated with a request such as this. Patty Hannah felt, at the very least, it would help to obtain letters of intent from other funding sources, particularly to identify the level of commitment. Jim Haguewood informed Mr. Pettyjohn that the Lodging Tax Advisory Committee is committed to putting heads in beds, and he indicated this is the fIrst lime this committee has received a request to fund a feasibility study. He was uncertain this was the appropriate place to seek funding. However, Mr. Pettyjohn indicated that much of the due diligence study has already been completed; otherwise, the group wouldn't have proceeded with this request. Councilman Wiggins felt that State statutes would allow for the funding of this type of project, and Steve Oliver indicated there is some precedence for this type of funding in light of the efforts of the Hurricane Ridge Public Development Authority. Further discussion was held on the demand for lodging tax funds, and Manager Quinn informed the group that City staff can look for funding In other areas, such as through the Capital Facilities Plan or economic development funds. The committee members expressed the opinion that this is an exciting proposal, and they asked for additional information from Mr. Pettyjohn in terms of a pro forma, funding commitments, and the like. Therefore, it was agreed that the Lodging Tax Advisory Committee would meet again on Wednesdsy, October 17, 2001, at 2:00 p.m. to further consider the request from Cascadia, as well as the additional information to be provided by Mr. Pettyjohn. 2002 Marketing Program Proposal - Port Angeles Chamber of Commerce: Russ Veenema, Executive Director of the Chamber of Commerce, presented an overview of the Chamber's 2002 Marketing Program Proposal in the amount of $439,000, which included an itemization of funding requests for such categories as special events, advertising and promotions, Visitor Center expenses, Parks & Recreation activities, joint marketing of the Peninsula, and administrative support expenses. Mr. Veenema reviewed the plans and criteria for special events and described the various components of advertising. In response to an inquiry from Councilman Campbell regarding the need for accountability in terms of tracking success from advertising, Mr. Veenema indicated the results can be monitored in a variety of ways: the number of visits to the web site, written requests for information, room tax revenues, plus City-wide occupancy numbers. Thus far, approximately eight facilities have committed to provide occupancy statistics. Discussion followed, and the question was raised as to how many events and activities could be created this coming year. Lengthy discussion followed in this regard, with commentaries offered as to certain events and activities that could be offered, such - 2- LQDGlNG TAX ADVISORY COMMITTEE September 20, 200 I 2002 Marketing Program Proposal - Port Angeles Chamber of Commerce (Cont'd) Funding Proposals from Parks & Recreation Next Meetings Adjournment as outdoor games. The use of reserve funds was discussed, and it was suggested that information be received from City staff as to the status of unspent funds, such as those funds set aside for the Convention Center. Additionally, the question should be answered as to where interest income from these funds is maintained. Funding Proposals from Parks & Recreation: Parks & Recreation Director Connelly related to the committee members his interest in seeing the Parks' endeavors sustain and grow. He noted the events will be tracked differently this coming year, as it is intended to survey each participant to obtain pertinent information. Recreation Services Manager Cole presented two proposals from the department, one in the amount of $28,000 for the annual recreational and sports events and one in the amount of $2,000 for a "Forest Frenzy" event. Mr. Cole explained the Forest Frenzy events is a non-competitive mountain bike event, and it would be expected that over 500 participants would be coming from the Puget Sound area. He explained in detail the goals and objectives of the Parks programs, economic impact realized, and the events proposed for 2002. Lengthy discussion and debate followed concerning the overall funding for events and activities, as well as the possibility of certain Parks & Recreation expenses being out of the General Fund. Mr. Veenema was asked to submit a listing of the different funding requests being submitted for next year's events, but Mr. Veenema requested that the Chamber and its Board and committees be allowed to make the allocations within the realm of the funding set aside by the City. In recognizing the need to fund the various activities planned throughout the community, it was suggested that a commitment be made that the Parks & Recreation events will be fully funded at least to the current level, whether or not the funding is forthcoming from lodging tax revenues. Further debate followed as to whether more funding should be set aside for events and activities as opposed to marketing. Because it is important to make certain advertising commitments on a timely basis, the committee agreed that another meeting should be held in the near future to further discuss the issue. In addition, it was asked that more information be provided to the committee regarding the status of funds in reserve and the interest income generated. Next Meetings: The next meeting will be held on Thursday, October 4,2001, at 2:00 p.m., to discuss funding levels for marketing and special events/activities. Another meeting will be held on Wednesday, October 17,2001, at 2:00 p.m. to furtherreview the request for the Cascadia Center Project. Adjournment: The meeting adjourned at4:15 p.m. ~~'~-,- ___ Glenn Wiggins, aIr &(I~~1.kmA- BeckyJ. U , Clerk I - - 3-